Mamdani Sues Instant Recovery Corp. for Illegal Towing Fees
The Mamdani administration is taking legal action against a Bronx tow truck operator accused of systematically overcharging New Yorkers.
Mayor Zohran Mamdani and the Department of Consumer and Worker Protection (DCWP) have filed a lawsuit against Instant Recovery Corp. after an investigation found the company repeatedly violated New York City consumer protection law. The owner of Instant Recovery is Jake Rios.
DCWP's investigation found the company:
Charged more than legally permitted amounts for towing, drop and storage fees
Conducted illegal tows
Required customers to pay in cash only
Refused to provide receipts
The city is seeking full restitution for affected customers, civil penalties for over 1,000 violations, and revocation of Instant Recovery's tow truck license. This follows the DCWP - led by Commissioner Sam Levine - warnings over 300 other tow truck operators to follow the law or face consequences.
"From dolly and special tow fees to overcharging for storage and drop fees, Instant Recovery treated the law as optional," said DCWP Commissioner Sam Levine. "Our lawsuit puts the entire industry on notice."
Mayor Mamdani said, “Tow trucks often meet New Yorkers on their worst days — after an accident or a breakdown. Instead of offering help, companies like Instant Recovery have taken advantage of people when they need help most, extorting them with price gouging, hidden fees and coercive charges. Today, we’re fighting back — demanding full restitution for every New Yorker harmed and making clear to the entire industry: if you prey on our neighbors and ignore the law, we will hold you accountable.”
The action is part of the administration's ongoing junk fee crackdown under Executive Order 09, which has also targeted Extra Space Storage, Radiant Solar, deceptive hotel services, and illegal tax preparer fees.
See everything the Mamdani administration has done to advance economic justice.
Details on the Instant Recovery Towing Lawsuit
What is the lawsuit against Instant Recovery Corp. about? The City of New York has sued Instant Recovery Corp., a Bronx-based tow truck company, for charging illegal fees, overbilling customers, demanding cash-only payments, and refusing to issue receipts in violation of NYC consumer protection law.
Will affected customers get their money back? The city is seeking full restitution for all consumers harmed by Instant Recovery's practices as part of the lawsuit.
How can I check if a tow truck company is licensed in NYC? Check their license status at nyc.gov/dcwp or call 311. You can verify before or after a tow.
What fees can a tow truck company legally charge in NYC? Operators must stay within legally set limits for towing, drop, and storage fees. Cash-only demands and refusal to provide receipts are illegal.